2017 FHA Mortgage Insurance Costs Reduced

HUD just announced a reduction to FHA’s monthly mortgage insurance premiums (MIP) The FHA is reducing its annual mortgage insurance premium by 25 basis points for most new mortgages with a closing or disbursement date on or after Jan. 27, 2017. The new rates are projected to save new FHA-insured homebuyers an average of $500 this year. The HUD secretary said consumers are facing higher credit costs as mortgage interest rates increase.

“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” said HUD.

Please see the new 2017 FHA Mortgage Insurance Premium chart below. The average buyer obtaining a $250,000 mortgage with only a 3.5% down payment, will pay around $625 less per year than last year!

This will not only help more borrowers qualify for a home purchase, but will also help in managing their budgets better too. In addition, home buyers looking to refinance their FHA loan will save as well. Learn more about all the FHA loan details here. If you have additional questions, please contact us at ph: 800-743-7556